Decline in the prices of financial stocks, with significant losses, weighed down the Trinidad and Tobago Stock Exchange this week, with 9 stocks losing and 6 gaining. The week closed with the All Trinidad and Tobago Index and the Combined Index declining.
The average PE ratio of the market closed at 7.74 based on 2023 earnings and 5.67 based on estimates of the 2024 earnings. The difference illustrates the market’s current undervalued level and the potential gains ahead.
In a week that ended with few stocks posting notable gains. Angostura Holdings rose by just 25 cents to $14.25 and Unilever rallied by 18 cents to close at $11.18. Ansa Merchant Bank dropped $1.50 to close at $40, Republic Holdings slipped $1.09 to end the week at a 52 weeks’ low of $112.05, Scotiabank fell $1 to $55 and Ansa McAl lost $1.35 in closing at $56.
Stocks with the potential to gain more than 100 percent when the market comes back to life, include CIBC Caribbean Bank which could gain 200 percent, the severely undervalued Guardian Holdings, with a 430 percent potential, Republic Holdings at 140 percent, First Citizens Bank 100 percent, Massy Holdings 50 percent, Trinidad Cement with 340 percent. Eric Solis with a 100 percent potential gain and One Caribbean Media with 315 percent.
Investors should watch Prestige Holdings with the potential to gain 80 percent and Trinidad and Tobago NGL with a potential gain of 290 percent.
